The age-old saying, "When it rains it pours” is especially true when an unexpected emergency pops up- not only do you need to take time off work, but you may also need to spend $500 on new tires, or visiting the doctor. Recently the Federal Reserve noted that almost half of Americans do not have $400 available in an emergency fund.
Almost HALF.
Here at America Saves, we see that as a crisis. A SAVINGS CRISIS. We want nothing more than to have more individuals join us in our quest to #ThinkLikeASaver and be prepared for life’s unexpected moments by having at least $500 in a savings account.
In fact, we thought of 38 Reasons Why You Should Have a $500 Emergency Fund.
38 Reasons
- Shattered iPhone
- Computer hard drive crash (very important for the self-employed]
- Emergency visit to the dentist for a chipped tooth
- Tooth extraction for a pet
- Replace car AC (especially in hot climates)
- Replace car transmission
- Red light camera ticket
- Speeding ticket
- Replace or fix vacuum for your house
- Stove repair
- Broken refrigerator
- Broken instrument (if a child is in the band)
- Travel for unexpected loss/funeral/celebration of life
- Root canal
- Washer/dryer repair
- Airline lost your baggage –have to repurchase clothes and toiletries
- Emergency plumber for clogged plumbing line in home
- Lost or replacement of work tools
- Emergency stitches from cutting your finger while preparing dinner = trip a to the emergency room and a copay/deductible
- Work travel that you have to pay for upfront and then get reimbursed
- Electric garage door repair
- Home evasion –replacing items before insurance claims come through
- Unexpected move required for work
- Car gets towed
- Flat tire
- Missing work due to illness when you’re paid hourly and do not have sick leave/vacation/etc.
- Fender bender
- Flooded basement
- Limb/branch/tree falling on car
- Limb/branch/tree falling on house
- Replacement key fob for car
- Calling a locksmith when you’re locked out of your house
- Lost glasses (either you or your children)
- New tires
- Unexpected travel (to visit sick family member)
- Prescription costs
- Increase in utility bills
- Uniforms for kids sports or extracurricular activities
Of this list, chances are you’ve already experienced quite a few of them. And since we can’t really prevent them, the one thing we can do is be prepared.
Saving isn’t a burden, it’s a mindset. Create a simple goal to get you to your $500 goal— one that’s feasible and sustainable. Completely cutting off all the things that make you happy in order to “save” will make saving that much harder. But, much like the tip given by Better Money Habits, choosing one thing to give up would be easier to stick to.
Now that you’re in the savings mindset, and ready to be prepared for whatever life throws your way, head over to take the America Saves pledge, or re-pledge with a new savings goal in mind.
Written by Kia Young
Other Saving Resources:
Six simple steps to jump start your emergency fund
Most Americans Don't Have Enough Savings
Summer Financial Checkup
ABOUT THE PERSONAL INVESTMENT ENTERPRISE (PIE) PROGRAM
The Personal Investment Enterprise (PIE) program is a local savings program provided through Community Action Programs of Boulder County and Foothills United Way. The program is designed for low-income families to enroll in financial literacy classes and save through a matched saving account at a rate of 4 to 1. The first step in applying to the program is to attend an orientation meeting with Nino Gallo at Community Action Programs at Boulder County. Nino may be reached at 303-441-3998 or at [email protected]. For more information on the PIE program visit http://www.bouldercounty.org/family/financial/pages/pie.aspx. To see if you qualify, take this survey: https://www.surveymonkey.com/r/PrelimPIE.
